Courtesy of Chris Kimble.
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Above is an update on the DAX index from Germany.
The DAX lead the S&P to the upside from late 2014 to early 2015. After hitting channel resistance in early 2015, the DAX has been weak and other key markets around the world have followed.
The DAX hit rising channel support early this year and rallied for a couple of months. The S&P followed the action of the DAX, once it hit support.
Of late the DAX hit 1-year falling channel resistance at (1), where it created a reversal pattern. Last week it broke 4-month rising support at (2), with some follow through to the downside today at (2).
The DAX remains a key market that has influence on the prices in the states.
What the DAX and Crude Oil (Monster Resistance) does going forward, should have an important impact on the broad markets in the states.
Bulls want the DAX and Crude Oil to take out falling resistance levels, to keep the 4-month rally going. What these two do at resistance, could well set the tone for what stocks do going into year end!
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